Several factors contribute to the length of time projects spend in interconnection queues:
Key Factors Contributing to Long Interconnection Queue Times
- Congestion in the Queue:
The sheer number of projects ahead in the queue slows down the process for later entrants. Studies show that as more generators are ahead in the queue, necessary engineering studies are returned more slowly, increasing overall wait times. - Complexity of Engineering Studies:
Detailed engineering studies are required for each interconnection request. These studies assess the impact on the grid and can be time-consuming and costly. Generators with higher interconnection costs are more likely to withdraw from the queue before completing all studies. - Geographic Location and Permitting Difficulties:
Projects closer to grid connection points might face fewer permitting difficulties, but location can still influence costs and timelines. However, costly completed interconnections do not significantly reduce costs for later projects in the same location. - Cost Allocation Policies:
How costs are allocated among projects can impact wait times. Some reforms, such as changes in cost allocation policies, have been shown to reduce queue times significantly, as seen in New York. - Grid Capacity and Infrastructure:
The capacity and state of existing grid infrastructure can limit how quickly new resources can be integrated, contributing to backlogs. Upgrades and expansions are needed to accommodate growing demand from renewable sources. - Volume of Renewable Energy Projects:
The increased demand for interconnection from solar and solar/storage hybrid resources has risen steadily, contributing to longer queues and wait times, especially in regions with high renewable adoption like California. - Regulatory Frameworks and Policy Reforms:
Effective policy reforms, such as providing detailed hosting capacity information, can expedite interconnection processes. For example, Massachusetts has seen significant reductions in queue times through such reforms.
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